{"id":1418,"date":"2022-07-27T13:41:12","date_gmt":"2022-07-27T13:41:12","guid":{"rendered":"http:\/\/demo6.aiwalls.com\/automatic-news\/?p=1418"},"modified":"2022-07-27T13:41:12","modified_gmt":"2022-07-27T13:41:12","slug":"military-aircraft-drive-us-goods-orders-higher-in-june","status":"publish","type":"post","link":"https:\/\/internationalpulse.net\/?p=1418","title":{"rendered":"Military aircraft drive US goods orders higher in June"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p><em><small>New orders for US military aircraft soared more than 80 percent in June &#8211; Copyright AFP\/File JUSTIN TALLIS<\/small><\/em><\/p>\n<p>An eye-popping surge in new orders for US military aircraft in June drove a surprise increase in demand for big-ticket manufactured goods, according to government data released Wednesday.<\/p>\n<p>New orders for defense aircraft and parts surged 80.6 percent compared to May, pushing the total for all durable goods up 1.9 percent in the month to $272.6 billion, the Commerce Department reported.<\/p>\n<p>Economists were projecting a 0.5 percent drop in the key data point that feeds into quarterly economic growth calculations.\u00a0<\/p>\n<p>Orders have increased in eight of the past nine months, and even excluding the volatile transportation segment, new orders still gained 0.3 percent.<\/p>\n<p>The increase points to solid demand even as US inflation rages at a 40-year high, but economists warn uncertainty caused by the war in Ukraine may cool business investment plans, which could tamp down orders in coming months.<\/p>\n<p>The US Federal Reserve is on an aggressive campaign to raise interest rates and to cool the economy and douse inflation fires \u2014 with another hike expected later Wednesday.\u00a0<\/p>\n<p>Even as borrowing costs rise, firms and households still have plenty of cash and pent up demand, in part due to supply snarls throughout the recovery from the pandemic downturn.<\/p>\n<p>Gregory Daco, chief economist at EY Parthenon, called it \u201cvery encouraging news from the business side,\u201d saying \u201corders were still growing strongly\u201d for goods outside the defense aircraft sector.<\/p>\n<p>While civilian aircraft declined in the month, orders for vehicles and parts gained 1.5 percent.<\/p>\n<p>Ian Shepherson of Pantheon Macroeconomics said he expects the volatile numbers to slow in coming months.<\/p>\n<p>\u201cThe surge in the headline does not change the bigger picture of a slowdown in spending, but it has not reached recession-type proportions,\u201d he said in an analysis.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>New orders for US military aircraft soared more than 80 percent in June &#8211; Copyright&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[9],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast 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